[LINK] WSJ/ AFP / SMH: 'Google in antitrust crosshairs'

Roger Clarke Roger.Clarke at xamax.com.au
Fri Jun 24 12:53:07 AEST 2011


Being evil? Google in antitrust crosshairs
June 24, 2011 - 10:20AM
AFP, reprint in SMH
http://www.smh.com.au/business/world-business/being-evil-google-in-antitrust-crosshairs-20110624-1gi9g.html

The US Federal Trade Commission (FTC) is poised to open a formal 
antitrust probe into whether internet search giant Google has abused 
its dominance on the web, The Wall Street Journal reports.

The newspaper, citing ''people familiar with the matter,'' said the 
FTC is preparing to serve Google with civil subpoenas ''signalling 
the start of a wide-ranging, formal antitrust investigation''.

The Journal said the five-member commission will send Google the 
formal demands for information ''within days'' and other companies 
were likely to receive requests for information about their dealings 
with Google.

The FTC declined to comment on the report and there was no immediate 
response to a request for comment from Google.

Google, which controls around 65 per cent of the lucrative US 
internet search market, has been the target of numerous antitrust 
investigations by the FTC and the US Department of Justice in recent 
years.

But the Journal said the FTC's probe ''is the most serious to date'' 
in the United States because it will examine ''fundamental issues 
relating to Google's core search advertising business''.

Google makes most of its money from search-related advertising. The 
Journal said the probe will look at whether Google ''unfairly 
channels users to its own growing network of services at the expense 
of rivals''.

European Union competition watchdogs opened an investigation into 
similar allegations in November.

Google has faced increasing scrutiny from US and European regulators 
as it has grown over the years from a scrappy startup into an 
internet powerhouse.

In April, the US Justice Department approved Google's entry into the 
online travel sector with its $US700 million ($665 million) purchase 
of flight data firm ITA Software but it insisted on a number of 
concessions from Google.

Several online travel sites, including Expedia, Kayak and 
Travelocity, had sought to block the Google-ITA deal, claiming it 
would give Google too much control over the lucrative online travel 
market and lead to higher prices.

In late March, the FTC reached a settlement with Google over Google 
Buzz, the social networking tool rolled out last year which spawned a 
slew of privacy complaints. Under the settlement announced by the US 
regulator, Google is required to implement a comprehensive privacy 
program and will be subject to independent privacy audits every two 
years for the next 20 years.

Also in March, a US judge dealt a setback to Google's plans for a 
vast digital library and online bookstore, rejecting a copyright 
settlement hammered out by the internet giant with authors and 
publishers.

In 2008, Google abandoned a plan to forge a joint search advertising 
partnership with Yahoo!, citing a desire to avert a ''protracted 
legal battle'' with US regulators.

AFP


-- 
Roger Clarke                                 http://www.rogerclarke.com/
			            
Xamax Consultancy Pty Ltd      78 Sidaway St, Chapman ACT 2611 AUSTRALIA
                    Tel: +61 2 6288 1472, and 6288 6916
mailto:Roger.Clarke at xamax.com.au                http://www.xamax.com.au/

Visiting Professor in the Cyberspace Law & Policy Centre      Uni of NSW
Visiting Professor in Computer Science    Australian National University



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